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Material - Coggle Diagram
Material
Inventory control
VED
HML
FSN
ABC analysis
A
10% Items
70% value
B
20% Items
20% Value
C
70% Items
10% Value
By setting levels
Re order level
Maxim cons x max lead time
ROQ
OC = CC
EOQ =
Minimum lvl
ROL - (avg consumption x avg lead time
Maximum lvl
ROL + ROQ - ( Min cons x Min lead time)
Avg lvl
(Min lvl + max lvl)/2 or Min lvl x 0.5 EOQ
Danger lvl
buffer stock
avg cons x emergency lead time
Inventory turnover ratio
cost of materials consumed /
Cost of average stock held
Average no of days inventory holding
360 Days (or) 12 Months/
inventory turnover ratio
Valuation
Discount & Subsidy
Deduct
Subsidy
Grant
Quantity discount
Trade Discount
Dont deduct
Cash discount :warning:
Duties & Taxes
Include
Basic custom duty
Road tax
Exclude
All credit availed taxes
Penalty and charges
If its abnormal
dont take for valuation
Other expenditure
Add
Insurance charges
commission & Brokerage
Freight inwards
Non returnable containers
Normal shortages
Dont add
Abnormal shortages
Returnable containers
Valuation of Issues
Cost price method
Specific price
FIFO
LIFO
Base stock method
Average price method
Simple average
Weighted average
Notional price method
Standard price method
Inflated price method
Re use price method